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5. American Steel Corporation is considering two investments. One is the purchase of a new continuous caster costing $100 million. The expected net present value
5. American Steel Corporation is considering two investments. One is the purchase of
a new continuous caster costing $100 million. The expected net present value of
this project is $20 million. The other alternative is the purchase of a supermarket
chain, also costing $100 million. It, too, has an expected net present value of
$20 million. The firm
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